Benson Inc During 2017, Benson Purchased $1,450,000 of Raw Materials, Incurred Direct

question 108

Multiple Choice

Benson Inc.'s accounting records reflect the following inventories: $$\begin{array} { l c c c } & \text { Dec. } 31,2016 & \text { Dec. 31, 2017 } \\\text { Raw materials inventory } & \$ 80,000 & \$ 64,000 \\\text { Work in process inventory } & 104,000 & 116,000 \\\text { Finished goods inventory } & 100,000 & 92,000\end{array}$$ During 2017, Benson purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000. How much is total manufacturing costs incurred during 2017 for Benson?

• A)$1,864,000
• B)$1,876,000
• C)$1,860,000
• D)$1,872,000

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Definitions:

Gas Exchange

The process by which oxygen is taken in and carbon dioxide is released out, occurring in the lungs and tissues or in the cells and environment for organisms.

Transpiration

The process by which plants absorb water through the roots and then give off water vapor through pores in their leaves.

Perspiration

The process of sweating, through which the body releases excess heat and water.

Transduction

A process in genetics where bacterial DNA is transferred from one bacterium to another by a virus.